Wall Street Executives Fret About Talent Drain

New regulations combined with years of scandals and bad press has driven executive talent away from Wall Street and into Silicon Valley.

The departure of employees may force Wall Street to consider
a wider range of people for positions. Heidrick & Struggles'
Boehmer gave a presentation to a group of young professionals in
Davos about his biggest challenge recruiting for big banks these
days: getting executives to think creatively when filling
positions.

In the presentation - called "Hiring an oddball" - Boehmer
described how hard it is to get bank executives to hire creative
and "quirky" leaders who do not "fit in" with the prototypical
suited-up Wall Street mold, but who could help revolutionize the
industry.

Instead, those quirky types are sought by Silicon Valley,
and they may be happier there. Many prefer the laid back
atmosphere, not to mention the challenges of building a
business, and the promise of lucrative rewards at companies like
Google, Facebook and smaller startups, Boehmer
said.

"Banks are not getting top-level talent out of universities
anymore, so in 10 to 15 years, there could be a big problem when
it comes to leadership at the senior level of these firms,"
Boehmer said. "They're seeing big gaps in talent."

Boehmer said he performed a search for a technology position
at a major investment bank, calling on candidates from Silicon
Valley who might be lured to New York with mega-paychecks. He
was denied by everyone he approached, he said.

On the flip side, Heidrick & Struggles also did a search for
a mobile-payments company on the West Coast that was looking for
someone with financial expertise but offered just one-quarter of
the pay. In that case, "we got tons of applicants," said
Boehmer.

Jack Dunn, president and CEO of FTI Consulting, recalled a
recent conversation with a friend's son who is about 35 years
old and works at a major Wall Street bank.

Despite having a lucrative pay package and senior title, all
the son talked about was finding an exit strategy, Dunn said.

"When I was young and didn't know any better, I would have
thought it was a dream job," said Dunn, a former investment
banker. "It's a problem because we're going to need someone to
pick up the pieces, and a lot of the best people are leaving
these firms."